September 6 (SeeNews) - Slovenian retailer Mercator [LJE:MELR] said on Thursday it swung to a consolidated net profit of 1.5 million euro ($1.7 million) in the first six months of 2018, from a restated net loss of 4.6 million euro in the prior-year period.
Consolidated revenue rose 0.8% on the year to 1.06 billion euro in the six months through June, while revenue from retail gained 6.6% to 787.3 million euro, Mercator said in a filing to the Ljubljana Stock Exchange.
The re-establishment of retail operations in the market of Bosnia and Herzegovina in 2017 had a positive effect on Mercator Group's revenue, the company said. Slovenia, where revenue growth of 0.8% was recorded in retail, and Serbia, where revenue from retail operations expanded 1.1%, remain the most important markets of the Mercator Group.
"The new strategy and Mercator's drive to be the best local retailer in all markets of its operations have evidently yielded positive results," said Tomislav Cizmic, president of the management board of Mercator Group.
"Efficiency will be further improved by deleveraging and implementation of strategic development projects that of course include the new logistics and distribution centre in Ljubljana," he added.
The Mercator Group's EBITDA totalled 50.5 million euro in the first half of 2018; in the equivalent period of the preceding year it amounted to 44.6 million euro, according to restated data.
The group's net financial debt as at June 30, 2018 amounted to 771.1 million euro, which is 80.8 million euro less than as at June 30, 2017. In 2018, Mercator has continued to settle all of its liabilities to financial and business partners in compliance with the agreed terms and deadlines.
Capital expenditures of the Mercator Group in the first half totalled 13.7 million euro, down 47.2% on the year, of which 50.9% was used for investments in Slovenia and 49.1% for investments in international markets.
The Slovenian group operated 1,242 retail units as of end-June.
In the period from January to June, nine new units were opened in the markets of Slovenia, Serbia, and Montenegro, while 72 units saw refurbishments or layout updates (including Bosnia and Herzegovina), of which 48 were in Slovenia. An online store called IDEA Online was launched in Montenegro.
Mercator is part of Croatia's ailing food-to-retail concern Agrokor. The companies within the Mercator Group reported until and including June 9, 2017, a total of 43.8 million euro of receivables by the Agrokor Group companies. In January 2018, a Croatian court recognized and confirmed all reported receivables.
On July 4, Agrokor creditors approved a settlement agreement, which envisages the establishment of a new Agrokor concern held by the creditors. The largest shareholder in the new concern will be Russia's Sberbank with a 39.2% stake.
($=0.860155 euro)
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